6. A truck costing $30,000 was destroyed in a flood. At the time of the flood, the accumulated depreciation on the truck was $16,000. An insurance cheque for $37,000 was received based on the replacement cost of the truck. The entry to record the insurance proceeds and the disposition of the truck will include a

Question 6 options:

	credit to gain on disposal of $21,000.
	credit to the Truck account for $16,000.
	credit to the Accumulated Depreciation account for $16,000.
	credit to gain on disposal of $23,000.
	None of the above.

7. Which of the following statements is false?

	Notes payable are sometimes used instead of accounts payable.
	Most notes payable and bank loans are non-interest bearing.
	Notes payable reflect a promise to repay a specified amount of money either at a fixed future date or on demand.
	Notes payable usually require the borrower to pay interest.
	None of the above.

8. Slow Ltd. lends Quick Ltd. $90,000 on April 1, accepting a 10-month, 5% interest-bearing note. Interest is due the first of each month, commencing May 1. Slow Inc. prepares financial statements on April 30. What adjusting entry should be made before the financial statements can be prepared?

Question 8 options:

Interest Receivable			375
	Interest Payable			375

Cash			375
	Interest Revenue			375

Interest Receivable			3,750
	Interest Revenue			3,750

Note Receivable			90,000
	Cash			90,000

None of the above

9. The following information relates to Phosphate Corporation:

Prepaid insurance, December 31, 2018	$125,000
Prepaid insurance, December 31, 2019	$145,000
Insurance expense for 2019	$480,000

What was the amount of cash paid for insurance during 2019?

Question 9 options:

	$625,000
	$500,000
	$480,000
	$460,000
	None of the above